The House Appropriations Committee Chair has proposed a 2025–27 operating budget that would appropriate $77.758 billion from funds subject to the outlook (NGFO). This would be an increase of $5.813 billion (8.1%) compared to current appropriations.

Although this is $711.9 million less than would be appropriated under the Senate Chair’s proposal in 2025–27, the House Chair’s proposal would cost significantly more in 2027–29 than the Senate Chair’s proposal. New policies in the House Chair’s proposal would increase by a net of $918 million in 2025–27 and by $4.313 billion in 2027–29. New policies in the Senate Chair’s proposal would increase by a net of $1.630 billion in 2025–27 and by $1.555 billion in 2027–29.

To fund this spending, the House Chair’s proposal would increase revenues by $5.181 billion in 2025–27 and by $9.673 billion in 2027–29. These include the financial intangible assets tax, business and occupation tax increases, and property tax changes that were proposed last week.

Additionally, the proposal would transfer $594 million from other funds to the NGFO in 2025–27. The proposal would not use funds from the budget stabilization account (BSA, or the rainy day fund). However, it does assume 4.5% annual revenue growth in the second biennium, which gives it $995 million in phantom resources with which to help balance the budget over four years.

Like the Senate Chair’s proposal, the House Chair’s proposal would leave an unusually high unrestricted NGFO ending balance in 2027–29: $3.484 billion (including the $995 million in phantom resources). But both proposals rely on revenues from uncertain new taxes.